New Delhi, May 8 -- The Reserve Bank of India on Friday implemented rules related to how banks can include quarterly profits while calculating their capital strength, removing an earlier condition linked to bad loan provisions.

In a press release issued on Friday, the RBI said it had earlier released draft amendment directions on April 8, 2026, on the "Review of guidelines on inclusion of quarterly profits to Common Equity Tier 1 (CET1) capital for computation of Capital to Risk Weighted Assets Ratio (CRAR) for Banks" and had sought feedback from stakeholders.

CRAR is a key measure used to assess whether a bank has enough financial strength to absorb potential losses, while CET1 capital refers to the core capital held by banks.

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